Real Estate

Saving for a home

Today I received a call from a potential buyer. She wanted to buy a home and stop renting. She had about $500 saved and is currently paying $450 a month rent. She makes enough money to pay more in a mortgage payment, but so far has been spending what she makes. I know this because she only has a minimal amount of money in savings.
Honestly, there is not much available in today’s market for the $450 a month that she is use to paying in rent. She may be able to find a home that requires some work, but since she has nothing saved it would be hard to make the necessary repairs. Currently, she has enough for the earnest money but she has nothing saved for house maintenance and upkeep.
In my opinion, she needs to set a goal of saving some money but putting an extra $100 or $200 a month (if she can afford it) into a savings account. This would be like making a $550 or a $650 a month mortgage payment–her current rent plus the amount into savings. If she can do this faithfully for 6 months to a year then she will have some money to put towards a down payment or have in case of repairs. The more she can save the better. Down payment assistance programs may be available for her to use rather than using her own money and the seller can contribute to buyer’s closing costs.
Buying a home is a responsibility. I love helping first time home buyers realize their dreams. I do want to educate them so they go into the transaction with their eyes wide open and they are successful. If you have questions regarding homeownership, please feel free to contact me at 405-213-2992 or visit my website at http://www.sandiwalker.net. And be sure to follow my blog.

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